Internal Control Essay

Question 1 a) Select two companies where inadequate internal control have resulted in disastrous effects on the organisation or exposed it to heavy losses. Research the facts of the failure and report on the facts and the losses suffered. In your report, include suggestions for changes to operations (internal controls) that could have prevented the final outcome. Where could you find a list of these internal controls and how are they documented? Examples of companies include: Coles Myer Ltd and the Yannon affair Barings Bank (1995) AWA Case (1992) Integral Energy (2003) Australian Museum-theft of zoological specimens (2003) Argonaut Resources (2011) Each report should be about no longer than 1 page in length. Two reports required. b) Select two companies that have experienced recent corporate governance failures. Research the facts of the failure and report on the facts and the losses suffered. In your report, give suggestions on the Corporate Governance principles that should be implemented and that could have prevented the failure. Examples of companies include: ABC Learning (2008) Storm Financial (2009) Strathfield (2009) One-Tel HIH Independent Insurance (UK) Commander Communications (2008) EzyDVD (2009) Clive Peters Beechwood Homes Australian Discount Retail (Crazy Clarks’, Go-Lo, Sam’s Warehouse) (2009) Queensland Health Department (2011) Parmalat (Italy) Each report should be about no longer than 1 page in length. Two reports required. Question 2 a) In your own words explain Internal Control within an organisation, and state the major objectives of a system of internal control to management? b) List and briefly explain the five components of an entity’s internal control structure. Question 3 a) Define Corporate Governance and its application in the corporate world and discuss the need for Corporate Governance. b) Look up the Annual Reports for two of the following companies and comment on the appearance, structure, content, and usefulness of the Corporate Governance and Sustainability section of the report. How does it meet the current principles of Corporate Governance? Companies include: Banks: ANZ, CBA, NAB, Westpac, Bendigo Resources: BHP, RIO Tinto, Woodside, Santos Financial services: Macquarie Group, Perpetual, QBE Health care: Sonic, Resmed, CSL Retail: Woolworths, Wesfarmers, Metcash, Harvey Norman Property: Centro, Stockland, Westfield Property Trust, WRT Family business: Westfield, Harvey Norman, News Corporation Interesting: Fairfax, James Hardie, Qantas, Telstra Your report should be about no longer than 1 page in length. Two reports required.